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Tata Engineering powers ahead
Hindustan Times - September 23, 2002

New models and variants on the anvil

Tata Engineering, buoyed by the impressive numbers that the Indica is logging in month after month, is now ready to jumpstart the unveiling of several new models and variants over the next six months.
Dr V Sumantran, executive director - passenger cars and engineering research centre at Tata Engineering, told the Hindustan Times, "Not only are you going to see an extension of the Indica family, the sedan Indigo, but spanking new variants of both Sumo and Safari."

According to sources, what is perhaps more pertinent is that another passenger car in the D segment is also being readied, but nobody is talking about it. The same sources added that there was no timeline on this vehicle as it was in an early product development programme stage. Sumantran believes that Tata Engineering is technology resource rich with enormous skill sets which allows it to constantly work towards improving its power trains.

Leveraging this technology ethos by ramping up engine transmission and drive shafts, the resource pool is churning out new variants. A case in point is the Indica V2 2002. Sumantran reckons that the Indica has made an impression with the customer on the basis of the value proposition that is being offered. The 2002 version of the V2 has seen a lot of engineering upgradation which includes a stiffer front in the body structure, higher brake boosters in petrol, better road handling and riding and a crackerjack steering and suspension system.

All this came about through the refinement work that was going into the production of the Indigo. The Indica sedan which is to be launched in the last quarter of this calendar year will have several variants and will be priced between Rs 5 and 7 lakh. Sumantran says, "We are looking at a very credible entry into the C segment. This is a segment in which the owner of the car will be using the back seat more, so space is critical." With a 1400cc 85HP engine in petrol and a turbo charged one in diesel, backed by a three link independent rear suspension which handles well, pricing will be the key.

This will be followed over a period of time by the Indica Estate, a station wagon which will be upwards of Rs 7 lakh. This will be closer to the Maruti Baleno Altura in size. Sumantran adds, "We are doing a lot of interesting stuff. We are working on a lot of models and variants, but this is not the time to talk about it. The objective is to have a set of assets which we will continuously invest in, so as to maximise the market opportunity.

Concurrently, the passenger car business which is cash profitable presently, should become project profitable by year five which in this case is 2003-04. Last year, 64,000 Indicas were sold, while the threshold limit is 100,000 this year, inclusive of the SUVs. Sumantran says that the SUV is a lifestyle vehicle which hasn't caught on in India though nations like Thailand and Indonesia have shown aggressive growth in this segment.

He says, "The Sumo was followed by the Qualis which has done very well and now we have the Scorpio from the Mahindra stable. This is a continuum, new models will come in this segment and we aren't lagging behind. You will see different looking Sumos and Safaris in the near future." For all practical purposes, it seems that Ratan Tata's dream car project is finally delivering in spades after bleeding the company for the last two years.

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